RewardsA limited company can issueshares to investors who thenbecome shareholders in thatcompany. This is called: *Temporary CapitalEquity FinanceSelling off AssetsShort term Finance58

A shareholder is any individual, corporation, or organization who holds stock in a firm. A…

Answered: A limited company can issue shares to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

See similar textbooks

Similar questions

Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade Creditiii Debentureiv Money Market Instruments a.Only Equity Shares b.Both Equity Shares and Debentures c.Only Money Market Instruments d.Both Money Market Instruments and Trade Credit
Not-for-profit organizations should report investments in debt securities at which of the following amounts? a. potential proceeds from liquidation sale. b. present value of expected future cash flows. c. historical cost. d. market price.
Which of the following is not classified as an Investment Account -Investment in Subsidiary -Cash fund held for a long term purpose -Investment in Associates -Investment with a maturity period of 3 months and is also highly liquid 2. Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial Statement? -Changes in Owners Equity -Balance Sheet -Income Statement -Cash Flow 3. Debt Instrument investment can be classified under the following, Except? -Held to Maturity -At Amortized Cost -FAFVOCI -FAFVPL 4. When the Company Trades with an Investment in Associate, the Reported net income of the Parent Company should report the Intercompany transaction as? (1 Point) -As Inventory -An eliminated Entry -As Expense -As income
In what section of the balance sheet should the following items appear, and what balance sheet terminology would you use? a. Treasury stock (recorded at cost). b. Checking account at bank. c. Land (held as an investment). d. Sinking fund. e. Unamortized premium on bonds payable. f. Copyrights. g. Pension fund assets. h. Premium on common stock. i. Long-term investments (pledged against bank loans payable).
Which of the following would qualify as management companies? Face-amount certificate companies Closed-end funds None of the answer provided is correct Unit investment trusts
The company wishes to mobilize short term funds through various sources, Which of the following is not an appropriate source for the company? Select one: A. Equity Shares B. Commercial Paper C. Treasury Bills D. Commercial Bills
Which is a correct statement below? A. Equity is the residual interest in the liabilities of the entity after deducting all of its assets.B. Subscriptions receivable shall preferably be reflected as a deduction from the related subscribed share capital.C. Share premium is also known as capital stock.D. A deficit is a credit balance in retained earnings.
Which of the following statements correctly describes the nature of indirect financing as discussed in lectures? Group of answer choices A) It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. B) May involve an individual investor buying shares in a company when a company goes public via an initial public offering. C) More than one of the other answers is correct D) None of the other answers is correct E) It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike direct financing
What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust b. A closed-end fund? c. A stock of a company
Which of the following statements about the characteristics of debt and equity is true? a. All of the statements are true b. They can both be long-term financial instruments. c. They both involve a claim on the issuer's income. d. They both enable a corporation to raise funds.
Which of the following statements best describes how a corporation determines its cost of capital? Group of answer choices The cost is derived from determining the cost of each component in a firm's capital structure. The cost is a function of the issuance of interest-bearing instruments. The cost is derived only from permanent investments by shareholders. The cost is a function of temporary (short-term) sources of financing.
Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade Credit iii Debenture iv Money Market Instruments a. Both Money Market Instruments and Trade Credit b. Both Equity Shares and Debentures c. Only Equity Shares d. Only Money Market Instruments

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Financial Reporting, Financial Statement Analysis…

Finance

ISBN:

9781285190907

Author:

James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

A limited company can issue shares to investors who then become shareholders in that company. This is called: * O Temporary Capital O Equity Finance O Selling off Assets O Short term Finance